Material Management and Accounting System (MMAS)
An effective MMAS system is essential to your ability to develop accurate bills of materials based on valid requirements and ensure appropriate quantities of materials. Our company will serve as your accounting and government regulation compliance experts to ensure that your MMAS system adheres to systems criteria recently implemented by the Department of Defense (DOD), and certain civilian agencies such as the National Aeronautics and Space Administration (NASA).
Our objective is to ensure that your company has a fully compliant MMAS system that consistently results in reliable planning, controlling, and accounting for materials. We can help ensure your MMAS system results in sound material acquisition and management decisions and mitigate the risk of withholdings from progress payments and contract billings for failing to comply with newly implemented regulations. DFARS regulations governing MMAS system requirements have become more and more complex. DFARS 252.242-7004 currently requires an MMAS system to have adequate internal controls to ensure system and data integrity, and include requirements such as:
- An adequate system description including policies, procedures, and operating instructions that comply with the FAR and Defense FAR Supplement;
- Ensuring that costs of purchased and fabricated material charged or allocated to a contract are based on valid time-phased requirements as impacted by minimum/economic order quantity restrictions;
- Providing audit trails and maintaining records (manual and those in machine- readable form) necessary to evaluate system logic and to verify through transaction testing that the system is operating as desired;
- Establishing and maintaining adequate levels of record accuracy, and include reconciliation of recorded inventory quantities to physical inventory by part number on a periodic basis;
- Providing detailed descriptions of circumstances that will result in manual or system generated transfers of parts;
- Maintaining a consistent, equitable, and unbiased logic for costing of material; and
Periodic internal reviews to ensure compliance with established policies and procedures.
Proposed new rules designed to improve the efficiency and effectiveness of business system audits, if approved, may allow your company to self-certify the adequacy of its MMAS system with an audit by an independent CPA, in lieu of DCAA, to test your MMAS system for compliance with relevant systems criteria. Unfortunately, few independent CPA firms have the experience and expertise in government contracting to properly conduct such an audit in compliance with Generally Accepted Government Auditing Standards. Redstone Government Consulting has the unparalleled expertise, including over 160 years of senior level DCAA experience, needed to ensure your MMAS system complies with DFARS 252.242-7004 and other FAR and DFARS regulatory requirements.
Some of the services we provide to meet your MMAS system compliance needs include:
Other services we provide, outside of independent MMAS compliance audits, include:
- Cost Accounting Standards compliance support if situations dictate it.
- Designing and/or implementing a new tailored MMAS system, or updating the existing system for process improvements.
- Preparing written MMAS policies, procedures, and detailed staff instructions.
- Development and delivery of customized MMAS related staff training.
- Risk assessments and GAP analysis of your current MMAS policies, procedures, and practices.
- Mock audits of your MMAS system using procedures that mirror DCAA/DCMA procedures for evaluating estimating systems.
- Providing subject matter experts regarding MMAS system regulatory compliance and GAGAS compliance to assist independent CPAs and internal auditors performing MMAS system audits.
- Developing and implementing appropriate corrective action plans.
- Responding to DCAA/Independent CPA audit findings and contracting officer inquiries.
- Advice and assistance to supplement, as needed, internal compliance department knowledge and expertise.
- Strategic planning assistance.